How Supplemental Income Is Taxed: In Depth Look
Supplemental income often refers to payments that fall outside a normal paycheck, and many employers treat these amounts as supplemental wages for tax purposes under the internal revenue code. In a payroll context, these payments may be taxed differently from regular income because the IRS separates them from regular wages for income tax withholding. Employers […]
The True Cost of an Employee: How Much Employers Pay in Payroll Taxes
If you’re hiring workers, you’ve probably asked yourself: how much do employers pay in payroll taxes? It’s a fair, and important, question. These contributions are required by the federal government and form the backbone of many public benefits. Employers pay a significant portion of these taxes directly, separate from what employees pay out of their […]
Guide: Are Health Insurance Deductions Pre-tax On Wages?
If you’ve ever wrestled with a payroll platform or had to explain health insurance deductions to a confused employee, you’ve probably heard the question: “Are health insurance deductions pre-tax on wages?” It’s a fair ask, and not always a simple yes or no. The truth is, it often is pre-tax, but only if you’ve got […]
SUI vs SUTA: Key Differences You Should Know
SUI vs SUTA is not a comparison between two different payroll taxes. SUI and SUTA are two names for the same state unemployment tax that employers pay. Different words. Same obligation. The confusion comes from language, not law. States, payroll systems, and tax agencies use these terms interchangeably, which makes it feel like you’re missing […]
What Is Overtime Premium? Definition & Calculation
Overtime premium is the additional pay required when covered employees work overtime hours under U.S. employment law. This means hours worked in excess of standard working hours, typically more than 40 hours in a workweek. That extra amount is not optional, not discretionary, and not something you can smooth over later. It is premium pay […]
What is a PSD Code? Employer Payroll Guide
For employers operating in Pennsylvania, a PSD code is a required payroll identifier used to determine local tax obligations for each employee. PSD stands for Political Subdivision, and the political subdivision code identifies the exact municipality, school district, and tax collection district tied to an employee’s address or work location, making it a critical data […]